Ethereum has set up a strong support base above $1,580 and is closing in on the next resistant point at $1,650

Ether has rebounded from yesterday’s slump and is currently up by nearly 3% over the past 24 hours. The second-largest cryptocurrency is benefiting from the general rally of the market and could soon reach the next resistant point above $1,650.

Bulls have retaken control of the market with several cryptocurrencies trading in the green. If ETH continues on its current trajectory, it could soon reach the 100-day simple moving average.

ETH/USD has been trading in the green zone over the past few hours after setting up strong support above $1,580. The cryptocurrency remained strong above $1,550 yesterday and slowly began its recovery. At the time of this report, ETH/USD is trading at $1,633, close to the next resistant point ($1,650).

ETH/USD 4-hour chart. Source: Coinalyze

Technical analysis

There is a crucial bearish trend line close to the $1,660 mark on the hourly chart. The ETH/USD pair could face strong selling pressure close to the $1,650 mark if bears regain control of the market. However, if the current trend continues, ETH/USD could surpass resistance at $1,650 and attempt to reach the 100 SMA on the 4-hour chart ($1,773.50).

Ether’s RSI is in the neutral zone (43.73), which means the market could head in either direction. The RSI needs to go beyond 70 before the market can become genuinely bullish. The MACD shows that ETH/USD is still within the bearish territory, which means the bears can easily retake control of the market despite the small rally over the past few hours.

If the bulls can push ETH/USD above the 100 SMA at $1,773.50, then the pair can attempt a fresh rally towards the monthly high of 1,944.30.

This post was originally published on Coinlist.